Technology, Markets, & Global Finance by Paul Barsch

Are Computers the New Boss in HR?

Too many resumes, too few job openings. What’s an employer in today’s job market to do? Turn to computers of course! Sophisticated algorithms and personality tests are the new rage in HR circles as a method to separate the “wheat from the chaff” in terms of finding the right employee. However, there is danger in relying on machines to pick the best employees for your company, especially because hiring is such a complex process full of nuance and hundreds of variables and multiple predictors of success.

The article “The New Boss: Big Data” in Macleans – a Canadian publication – discusses the challenges for human capital professionals in using machines for the hiring process– and coincidentally has a quote or two from me.

Net, net, with hundreds if not thousands of resumes to sort through and score for one to two open positions, it does appear this is an ideal task for machines. However, I believe a careful balance is in order between relying on machines to solve the problem and also using intuition or “gut decision making” especially to determine cultural fit. This is a complex problem to solve where the answer isn’t machine or HR professional –but in fact, both are necessary.